Indian companies are being strongly advised to invest in the UK ahead of the 2012 Olympic Games.
The British Deputy High Commissioner for South India, Mike Nithavrianakis said contract deals worth £6 billion as well as the 75,000 new business opportunities generated by the London Games present Indian companies with ample opportunity to solidify trade links between the two countries - as well as to use the UK as a springboard into European and Chinese markets.
Addressing the Indo-UK seminar on business partnerships, Nithavrianakis said potential trade would focus on high-tech, high growth and innovative industries.
Mr Nithavrianakis said the UKTI would play a key role in bringing together companies from the UK and the south Indian state of Kerala prior to the Games.
Despite the UK's laboured emergence from the recession, it is still a key trading post for India with bilateral trade between the two countries reaching £12.6 billion in 2008.
Business Secretary Lord Mandelson underlined the importance of the relationship ahead of his visit to India this week: "The UK and India are natural business partners. There are huge opportunities for UK firms in India and Indian firms are strong investors in the UK."
Dr Thomas Issac, State Finance Minister for the government of Kerala, said that the response to the governments decision to set up a venture capital fund for promoting investments was enthusiastic adding that information technology, biotechnology and tourism would be key areas of investment.
Dr Isaac added that investment in infrastructure has been planned in order to accommodate a surge in trade relations between the UK and Kerala.
UK Capital Investments News, December 2009
Friday, December 18, 2009
Mobile shells more UK capital investments in India
Mobile putes huge UK capital investments in India and said it would rather improve upon on its competitiveness in the market.
"We have already made over a billion dollar investment in India. We do not have to make more uk capital investments. We have to run the business more efficiently to be more competitive in the market".
He said, "We do not need to build more factories or plants because those are already in place. Now we need to expand operations as foundation is already there."
Mehta clarified that the company has no plans to enter the refining business in India.
About the state of its LNG business in India after availability of Reliance Industries' KG-D6 basin gas, he said, "Reliance gas from KG-D6 basin has not affected our business as market is large enough to absorb both LNG as well as domestic gas. Reliance is still buying LNG from us."
About retail business expansion, Mehta said, "The government has to finally decide, how they want to arrange the pricing mechanism for petroleum (products), before private sector retailing becomes viable business."
UK Capital Investments News, December 2009
"We have already made over a billion dollar investment in India. We do not have to make more uk capital investments. We have to run the business more efficiently to be more competitive in the market".
He said, "We do not need to build more factories or plants because those are already in place. Now we need to expand operations as foundation is already there."
Mehta clarified that the company has no plans to enter the refining business in India.
About the state of its LNG business in India after availability of Reliance Industries' KG-D6 basin gas, he said, "Reliance gas from KG-D6 basin has not affected our business as market is large enough to absorb both LNG as well as domestic gas. Reliance is still buying LNG from us."
About retail business expansion, Mehta said, "The government has to finally decide, how they want to arrange the pricing mechanism for petroleum (products), before private sector retailing becomes viable business."
UK Capital Investments News, December 2009
Tuesday, December 15, 2009
Foreign Investment in China Climbs for a Fourth Month
Foreign direct investment in China climbed at the fastest pace in 16 months in November, aiding the recovery in the world’s third-largest economy.
Investment rose 32 percent from a year earlier to $7.02 billion, the Ministry of Commerce said at a briefing in Beijing today. That compared with a 5.7 percent increase in October. Investment fell 9.9 percent in the first 11 months of the year, the government said.
China’s economy grew at the fastest pace in a year in the third quarter and the expansion will be 9.3 percent in 2010, according to the median forecast of a Bloomberg News survey of analysts. Fast-growing developing nations will lure funds away from advanced economies for the next 10 to 20 years, according to Thomas Deng, head of China strategy at Goldman Sachs Group Inc. in Hong Kong.
“China’s recovery, and especially the expanding consumer market, will continue to attract foreign investors,” said Xing Ziqiang, an economist at China International Capital Corp. in Beijing. “The Chinese market may be the brightest spot for growth for many multinational companies this year.”
Luxury car maker Bayerische Motoren Werke AG said last month that it will build a new factory worth 5 billion yuan ($732 million) in China to tap an auto market set to overtake the U.S. as the world’s largest.
Foreign direct investment will grow steadily in the next few months and may stay within the $7 billion to $8 billion monthly range attracted since August, the ministry said.
Accelerating Pace
“China’s long-term growth potential is bringing foreign capital into the country at an accelerating pace in the second half,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets Ltd. in Hong Kong.
Inflows of foreign direct investment have climbed for four months and that bodes well for private investment in a country that this year has garnered most of its growth from government- linked investment, said Kowalczyk.
“It’s important for policy makers to see that the private sector can pick up the baton at some point,” he said. “The fact that the foreign private sector is recovering and investing quite a lot is definitely positive.”
Developing economies will expand 5.1 percent in 2010 compared with 1.3 percent in advanced nations, according to the International Monetary Fund.
China’s industrial output grew more than economists estimated last month and exports fell the least in 13 months, confirming the nation’s role as the leader of the world recovery.
In China, gross domestic product will expand 10.5 percent this quarter, helping the government to top its 8 percent target for the year, according to the median estimate of 38 economists.
The Shanghai Composite Index has gained more than 80 percent this year.
UK Capital Investments News, December 2009
Investment rose 32 percent from a year earlier to $7.02 billion, the Ministry of Commerce said at a briefing in Beijing today. That compared with a 5.7 percent increase in October. Investment fell 9.9 percent in the first 11 months of the year, the government said.
China’s economy grew at the fastest pace in a year in the third quarter and the expansion will be 9.3 percent in 2010, according to the median forecast of a Bloomberg News survey of analysts. Fast-growing developing nations will lure funds away from advanced economies for the next 10 to 20 years, according to Thomas Deng, head of China strategy at Goldman Sachs Group Inc. in Hong Kong.
“China’s recovery, and especially the expanding consumer market, will continue to attract foreign investors,” said Xing Ziqiang, an economist at China International Capital Corp. in Beijing. “The Chinese market may be the brightest spot for growth for many multinational companies this year.”
Luxury car maker Bayerische Motoren Werke AG said last month that it will build a new factory worth 5 billion yuan ($732 million) in China to tap an auto market set to overtake the U.S. as the world’s largest.
Foreign direct investment will grow steadily in the next few months and may stay within the $7 billion to $8 billion monthly range attracted since August, the ministry said.
Accelerating Pace
“China’s long-term growth potential is bringing foreign capital into the country at an accelerating pace in the second half,” said Dariusz Kowalczyk, chief investment strategist at SJS Markets Ltd. in Hong Kong.
Inflows of foreign direct investment have climbed for four months and that bodes well for private investment in a country that this year has garnered most of its growth from government- linked investment, said Kowalczyk.
“It’s important for policy makers to see that the private sector can pick up the baton at some point,” he said. “The fact that the foreign private sector is recovering and investing quite a lot is definitely positive.”
Developing economies will expand 5.1 percent in 2010 compared with 1.3 percent in advanced nations, according to the International Monetary Fund.
China’s industrial output grew more than economists estimated last month and exports fell the least in 13 months, confirming the nation’s role as the leader of the world recovery.
In China, gross domestic product will expand 10.5 percent this quarter, helping the government to top its 8 percent target for the year, according to the median estimate of 38 economists.
The Shanghai Composite Index has gained more than 80 percent this year.
UK Capital Investments News, December 2009
Sunday, December 13, 2009
UK aims to Bolster Capital Rules
The U.K.'s Financial Services Authority proposed strengthening its rules that govern the amount and quality of capital that banks in the U.K. need to hold against potential losses as part of an effort to implement changes to European Union rules.
The proposals are expected to result in a £33 billion ($53.69 billion), or 5%, increase in the total amount of capital held by banks, with the bulk of this required to be held by the start of 2011, the FSA said.
The new rules will increase costs for banks, which will need to raise some of this extra capital, using higher-quality instruments than they have used in the past, from investors who may be unwilling to risk exposure to the banking sector in the wake of the financial crisis, regulatory observers said.
The FSA's new rules are designed to ensure that banks hold more capital against proprietary trading activities and securitization deals they invest in so they can better weather future financial crises. They are in line with changes to international capital rules set by the Bank for International Settlements.
The BIS is due to publish a draft proposal by the first quarter of 2010 on reforming its Basel II capital rules for the world's largest banks.
The FSA has suggested boosting the capital requirements for banks' trading-book exposures so they better reflect potential losses during times of financial turmoil, as well as improving the risk management of securitization exposures, partly by allowing firms to invest only in deals in which the originator retains a 5% economic interest.
It also has indicated it will impose higher capital levels for resecuritization deals in which an extra layer of complexity is added by repackaging existing asset-backed securities into new securitizations.
The new rules would limit a firm's lending to any one counterparty to 25% of its capital and upgrade standards of disclosure about capital levels to increase confidence in the financial sector, the FSA said.
They also would bring the U.K. into line with EU criteria for assessing the eligibility of hybrid capital to form a core part of the firm's overall capital base by specifying the flexibility of payments and loss-absorbency they must possess to be accepted, it said.
The FSA said the new capital requirements will cost firms £6 billion a year.
The new rules, in tandem with the FSA's plans to force banks to hold buffers of government bonds, will force many banks to alter their business models so they take on less risk from trading and investments in structured products, according to some regulatory consultants.
"This will change business models," said Selwyn Blair-Ford, senior domain expert at FRSGlobal, a risk and regulatory reporting company. "If I were a bank I would be questioning the ability to maintain certain business lines because of the increased costs of capital and liquidity."
Banks will also incur costs from having to raise capital from investors by issuing higher-quality instruments that absorb losses more efficiently.
"You've got firms at the moment which will be financing themselves with interest-bearing long-term bonds who will find that capital is just not acceptable anymore," said Blair-Ford. "The reason they had taken that route was because investors weren't willing to take raw equity."
The British Bankers' Association would only say that it is working with the financial authorities on the development of new capital rules.
"This is part of an international process to develop new rules for the treatment of capital," said Brian Mairs, a spokesman for the BBA.
UKCIG News, December 2009
The proposals are expected to result in a £33 billion ($53.69 billion), or 5%, increase in the total amount of capital held by banks, with the bulk of this required to be held by the start of 2011, the FSA said.
The new rules will increase costs for banks, which will need to raise some of this extra capital, using higher-quality instruments than they have used in the past, from investors who may be unwilling to risk exposure to the banking sector in the wake of the financial crisis, regulatory observers said.
The FSA's new rules are designed to ensure that banks hold more capital against proprietary trading activities and securitization deals they invest in so they can better weather future financial crises. They are in line with changes to international capital rules set by the Bank for International Settlements.
The BIS is due to publish a draft proposal by the first quarter of 2010 on reforming its Basel II capital rules for the world's largest banks.
The FSA has suggested boosting the capital requirements for banks' trading-book exposures so they better reflect potential losses during times of financial turmoil, as well as improving the risk management of securitization exposures, partly by allowing firms to invest only in deals in which the originator retains a 5% economic interest.
It also has indicated it will impose higher capital levels for resecuritization deals in which an extra layer of complexity is added by repackaging existing asset-backed securities into new securitizations.
The new rules would limit a firm's lending to any one counterparty to 25% of its capital and upgrade standards of disclosure about capital levels to increase confidence in the financial sector, the FSA said.
They also would bring the U.K. into line with EU criteria for assessing the eligibility of hybrid capital to form a core part of the firm's overall capital base by specifying the flexibility of payments and loss-absorbency they must possess to be accepted, it said.
The FSA said the new capital requirements will cost firms £6 billion a year.
The new rules, in tandem with the FSA's plans to force banks to hold buffers of government bonds, will force many banks to alter their business models so they take on less risk from trading and investments in structured products, according to some regulatory consultants.
"This will change business models," said Selwyn Blair-Ford, senior domain expert at FRSGlobal, a risk and regulatory reporting company. "If I were a bank I would be questioning the ability to maintain certain business lines because of the increased costs of capital and liquidity."
Banks will also incur costs from having to raise capital from investors by issuing higher-quality instruments that absorb losses more efficiently.
"You've got firms at the moment which will be financing themselves with interest-bearing long-term bonds who will find that capital is just not acceptable anymore," said Blair-Ford. "The reason they had taken that route was because investors weren't willing to take raw equity."
The British Bankers' Association would only say that it is working with the financial authorities on the development of new capital rules.
"This is part of an international process to develop new rules for the treatment of capital," said Brian Mairs, a spokesman for the BBA.
UKCIG News, December 2009
FSA proposes extra £32.6bn uk capital investment buffer for UK banks
British banks will be forced to hold up to £32.6bn in extra capital as a buffer against potential losses under new rules proposed by the financial watchdog.
The draft rules, published on Thursday by the Financial Services Authority, would also restrict what can be counted as capital.The FSA has developed the proposals in the wake of changes to European Union regulations covering banks' balance sheets.
In a statement, the regulator said the proposals would improve the quality of capital held by businesses affected – mostly banks and building societies, along with some investment companies.
The rules would ensure UK banks met new EU-wide criteria on the eligibility of hybrid capital – capital with both debt and equity features – to count as part of their overall capital, the FSA said.
They would also strengthen capital requirements specifically for trading books, to ensure companies better accounted for the risk of possible losses from "adverse market movements in stressed conditions".
Companies affected would collectively have to hold up to an extra £29.6bn of capital against their trading books, and an extra £3.6bn against securitised products.
The changes amounted to an increase in the "absolute amount of capital held by UK capital investment banks of about 5pc, and a reduction of risk-weighted assets of about 4pc", the FSA said. The regulator will embark on a consultation programme until March, before the final rules are published later next year. They are due to come into force in January 2011.
A spokesman for the British Bankers' Association said the draft rules were in line with the industry's expectations following the development of new EU rules.
The proposed commencement date was ambitious as banks would need time to adjust their business models and potentially raise more capital, he said. The association is lobbying for the rules to come into force in 2012.
UK Capital Investments News, December 2009
Thursday, December 3, 2009
Capital investment adequacy is a mutual headache for UK's building societies - UKCIG News
Back in February of last year, Adrian Coles, director general of the Building Societies Association, declared that his members were "definitely not" suffering the acute agony of the banks, a fate which I had predicted a few days previously.
Two years since, it's obvious who was right and who was wrong in that argument and yesterday saw further evidence of the ongoing problems the building society sector faces.
Yorkshire's willingness to consider absorbing the Chelsea Building Society is just one more rescue, albeit with a substantial capital restructuring as a condition. That said, it's not a done deal. Yorkshire is talking about a "possibility" of a merger and both sides' customers will vote. Such democracy is a far cry from the secret loans used by the Government to prop up HBOS while it merged with Lloyds TSB.
As with the banks, capital adequacy continues to be a headache at a time when the folding stuff is at a premium. Names such as Barnsley, Britannia, Chelsea, Cheshire, Derbyshire, Dunfermline, Scarborough and West Bromwich have all either been dismantled, rescued, recapitalised or merged since Coles made his assertion.
Two years since, it's obvious who was right and who was wrong in that argument and yesterday saw further evidence of the ongoing problems the building society sector faces.
Yorkshire's willingness to consider absorbing the Chelsea Building Society is just one more rescue, albeit with a substantial capital restructuring as a condition. That said, it's not a done deal. Yorkshire is talking about a "possibility" of a merger and both sides' customers will vote. Such democracy is a far cry from the secret loans used by the Government to prop up HBOS while it merged with Lloyds TSB.
As with the banks, capital adequacy continues to be a headache at a time when the folding stuff is at a premium. Names such as Barnsley, Britannia, Chelsea, Cheshire, Derbyshire, Dunfermline, Scarborough and West Bromwich have all either been dismantled, rescued, recapitalised or merged since Coles made his assertion.
Wednesday, December 2, 2009
UK Car Insurers to Raise Rates as capital Investment Income Dwindles
U.K. car insurers will have to raise premiums by a further 5 percent to make up for lower investment returns this year, according to research by Deloitte LLP.
British auto insurers will likely make a 1 billion-pound ($1.7 billion) loss from insuring drivers this year and will have to raise prices to offset the cost of claims and dwindling investment income, the London-based management consultant said in a statement.
“Motor premiums are on the increase,” said James Rakow, insurance associate partner at Deloitte. “The current year of trading is far from being profitable at a market level and this is likely to remain the case in 2010.”
The car insurance industry hasn’t made an underwriting profit, which excludes investment income, for at least 11 years, the Association of British Insurers said. The Bank of England’s record low interest, which was cut to 0.5 percent in March, is squeezing the investment returns that buoyed insurers’ earnings for the past decade.
Aviva Plc and RSA Insurance Group Plc, the U.K.’s two biggest non-life insurers, said they succeeded in pushing through price increases in the first half of this year. In the market as a whole, motor insurers raised prices at the fastest rate on record in the three months to Sept. 30, and the average premium has risen 14 percent over the last year, according to the Automobile Association Ltd.
UK Capital Investments Group News, December 2009
British auto insurers will likely make a 1 billion-pound ($1.7 billion) loss from insuring drivers this year and will have to raise prices to offset the cost of claims and dwindling investment income, the London-based management consultant said in a statement.
“Motor premiums are on the increase,” said James Rakow, insurance associate partner at Deloitte. “The current year of trading is far from being profitable at a market level and this is likely to remain the case in 2010.”
The car insurance industry hasn’t made an underwriting profit, which excludes investment income, for at least 11 years, the Association of British Insurers said. The Bank of England’s record low interest, which was cut to 0.5 percent in March, is squeezing the investment returns that buoyed insurers’ earnings for the past decade.
Aviva Plc and RSA Insurance Group Plc, the U.K.’s two biggest non-life insurers, said they succeeded in pushing through price increases in the first half of this year. In the market as a whole, motor insurers raised prices at the fastest rate on record in the three months to Sept. 30, and the average premium has risen 14 percent over the last year, according to the Automobile Association Ltd.
UK Capital Investments Group News, December 2009
Tuesday, December 1, 2009
UK Capital Investments adequacy is a mutual headache for UK's building societies group
Back in February of last year, Adrian Coles, director general of the Building Societies Association, declared that his members were "definitely not" suffering the acute agony of the banks, a fate which I had predicted a few days previously.
People have said that UK Capital Investments adequacy is a mutual headache for UK's building societies group.
Two years since, it's obvious who was right and who was wrong in that argument and yesterday saw further evidence of the ongoing problems the building society sector faces.
Yorkshire's willingness to consider absorbing the Chelsea Building Society is just one more rescue, albeit with a substantial capital restructuring as a condition. That said, it's not a done deal. Yorkshire is talking about a "possibility" of a merger and both sides' customers will vote. Such democracy is a far cry from the secret loans used by the Government to prop up HBOS while it merged with Lloyds TSB.
People have said that UK Capital Investments adequacy is a mutual headache for UK's building societies group.
Two years since, it's obvious who was right and who was wrong in that argument and yesterday saw further evidence of the ongoing problems the building society sector faces.
Yorkshire's willingness to consider absorbing the Chelsea Building Society is just one more rescue, albeit with a substantial capital restructuring as a condition. That said, it's not a done deal. Yorkshire is talking about a "possibility" of a merger and both sides' customers will vote. Such democracy is a far cry from the secret loans used by the Government to prop up HBOS while it merged with Lloyds TSB.
Lowestoft UK enterprise capital investments group
A seaside town where 5,000 new businesses have been set up in the past two years, creating almost 10,000 jobs, was named the enterprise capital of Britain.
Lowestoft in the East of England is said to have transformed itself from a town in decline hit by industrial downturns into a breeding ground for business growth.
The town, the most easterly in the country, ranks in the bottom 15 most deprived areas in the UK and beat off competition from London, Glasgow, Hull, Anfield in Liverpool, Merthyr Tydfil in south Wales, and Chatham in Kent to win the Government-run award.
Thanks to funding from the local enterprise agency NWES, the first centre for performing arts opened and money was invested in renewable energy.
Scott Cain, deputy chief executive of Enterprise UK, said: "Lowestoft and specifically NWES has demonstrated outstanding vision and drive to become this year's Enterprising Britain winner. It's an inspiring story of inspiring people coming together to change lives."
Trade, Investment and Small Business Minister Lord Davies said: "Enterprise remains the engine room of our economy, with 4.8 million businesses last year contributing more than 50% to the UK's turnover.
"NWES has turned a deprived seaside town into a community that is no longer dependent on a few major employers. In these tough economic times it has established a strong enterprise culture in the region, supporting growing businesses and creating jobs.
"In the current economic climate, we must continue to place enterprise at the heart of our businesses and communities."
UK Capital Investments Group News, December 2009
Lowestoft in the East of England is said to have transformed itself from a town in decline hit by industrial downturns into a breeding ground for business growth.
The town, the most easterly in the country, ranks in the bottom 15 most deprived areas in the UK and beat off competition from London, Glasgow, Hull, Anfield in Liverpool, Merthyr Tydfil in south Wales, and Chatham in Kent to win the Government-run award.
Thanks to funding from the local enterprise agency NWES, the first centre for performing arts opened and money was invested in renewable energy.
Scott Cain, deputy chief executive of Enterprise UK, said: "Lowestoft and specifically NWES has demonstrated outstanding vision and drive to become this year's Enterprising Britain winner. It's an inspiring story of inspiring people coming together to change lives."
Trade, Investment and Small Business Minister Lord Davies said: "Enterprise remains the engine room of our economy, with 4.8 million businesses last year contributing more than 50% to the UK's turnover.
"NWES has turned a deprived seaside town into a community that is no longer dependent on a few major employers. In these tough economic times it has established a strong enterprise culture in the region, supporting growing businesses and creating jobs.
"In the current economic climate, we must continue to place enterprise at the heart of our businesses and communities."
UK Capital Investments Group News, December 2009
Monday, November 30, 2009
UK Treasury says no probe into capital investment bank profit - UKCIG
Lord Myners to speak on bank profits in Dec. -Treasury
* No investigation under way
British financial services minister Lord Myners will voice concerns over bumper investment banking profits in a speech in December, but no investigation of the sector is under way, a Treasury spokesman said.
"Lord Myners intends to delve further into these issues in a speech early next month," the spokesman said.
"There isn't a formal investigation."
The Sunday Times newspaper reported that Myners had launched a probe into whether recent hefty investment banking profits had been facilitated by the billions of pounds of public money pumped into the financial system.
HSBC, Britain's biggest lender, in August reported that its investment banking profits rose by 130 percent in the first half of the year, while rival Barclays (BARC.L) said its investment banking profit doubled.
Investment banks pay out a high proportion of their profits in the form of staff bonuses, a practice which critics say fuelled a culture of excessive risk-taking which contributed to the credit crunch and subsequent banking crisis. (Reporting by Myles Neligan; Editing by Mike Nesbit) ((myles.neligan@reuters.com; +44 207 542 13 73))
UKCIG News, from Reuters, November 2009
* No investigation under way
British financial services minister Lord Myners will voice concerns over bumper investment banking profits in a speech in December, but no investigation of the sector is under way, a Treasury spokesman said.
"Lord Myners intends to delve further into these issues in a speech early next month," the spokesman said.
"There isn't a formal investigation."
The Sunday Times newspaper reported that Myners had launched a probe into whether recent hefty investment banking profits had been facilitated by the billions of pounds of public money pumped into the financial system.
HSBC, Britain's biggest lender, in August reported that its investment banking profits rose by 130 percent in the first half of the year, while rival Barclays (BARC.L) said its investment banking profit doubled.
Investment banks pay out a high proportion of their profits in the form of staff bonuses, a practice which critics say fuelled a culture of excessive risk-taking which contributed to the credit crunch and subsequent banking crisis. (Reporting by Myles Neligan; Editing by Mike Nesbit) ((myles.neligan@reuters.com; +44 207 542 13 73))
UKCIG News, from Reuters, November 2009
Sunday, November 22, 2009
Macquarie rolls out first structured product for UK Capital Investments
Macquarie Funds Group has launched its first structured product, dubbed the Macquarie Global Infrastructure Growth plan, into the UK capital investments market.
The asset management arm of Australia-based Macquarie Group said it added the plan to its existing managed funds range to provide UK investors with the potential for defensive long-term capital growth and annual income combined with partial capital protection.
According to Macquarie, the plan provides investors with the opportunity to diversify their portfolio by gaining exposure to the global infrastructure sector.
The company said exposure to the sector could be relevant for investors focusing on long-term wealth planning, diversification, inflation protection and defensive investing.
The Global Infrastructure Growth plan is open for investment until December 17.
Investors will have the opportunity to benefit from any increase in the level of the S&P Global Infrastructure index.
Philipp Graf, head of the UK investment solutions and sales team at Macquarie, said: "Given the essential nature of infrastructure, demand for its creation and maintenance continues to rise.
"Investors have recognised this opportunity, and infrastructure is now an established asset class globally."
Mr Graf said Macquarie was offering UK capital investments investors "tailored access" to the asset class through the new plan.
"The payoff profile of the Macquarie Global Infrastructure Growth plan has been specifically designed to reflect the underlying characteristics of infrastructure assets represented in the S&P Global Infrastructure index," he said.
"The plan will enable investors to add infrastructure exposure to their portfolios for diversification and long-term wealth planning purposes."
UK Capital Investments News, November 2009
The asset management arm of Australia-based Macquarie Group said it added the plan to its existing managed funds range to provide UK investors with the potential for defensive long-term capital growth and annual income combined with partial capital protection.
According to Macquarie, the plan provides investors with the opportunity to diversify their portfolio by gaining exposure to the global infrastructure sector.
The company said exposure to the sector could be relevant for investors focusing on long-term wealth planning, diversification, inflation protection and defensive investing.
The Global Infrastructure Growth plan is open for investment until December 17.
Investors will have the opportunity to benefit from any increase in the level of the S&P Global Infrastructure index.
Philipp Graf, head of the UK investment solutions and sales team at Macquarie, said: "Given the essential nature of infrastructure, demand for its creation and maintenance continues to rise.
"Investors have recognised this opportunity, and infrastructure is now an established asset class globally."
Mr Graf said Macquarie was offering UK capital investments investors "tailored access" to the asset class through the new plan.
"The payoff profile of the Macquarie Global Infrastructure Growth plan has been specifically designed to reflect the underlying characteristics of infrastructure assets represented in the S&P Global Infrastructure index," he said.
"The plan will enable investors to add infrastructure exposure to their portfolios for diversification and long-term wealth planning purposes."
UK Capital Investments News, November 2009
UK Capital and Land investment helps food security - UK Capital Investments
Yet another top scientific report has emphasised the acute problem of food security currently facing the world’s ever-increasing population. With up to 50% more food needed over the next half century, investment in soft commodities via investment in agricultural farmland has the perfect exit strategy.
The latest report into the huge food security challenge comes from the Royal Society, the national academy of science in the UK and Commonwealth. The report titled ‘Reaping the Benefits: Science and the Sustainable Intensification of Global Agriculture’ argues that the UK capital investments should receieve £2 billion on crop research over the next decade to ensure that the world has enough to eat by 2050.
One of the main themes behind the report is the immediate call to action. “We need to take action now to stave off food shortages,” said Sir David Baulcombe, Chairman of the report. “If we wait even five to ten years it may be too late,” he said, underlining the sense of urgency.
This sense of needing to act now before it’s too late is very real. Speaking on BBC News, Sir Baulcombe said that “several scientific studies have all identified over the next 30 to 40 years the need for a massive increase in the amount of food that is produced”. By 2050, the world’s population could well number 9 billion and all these new mouths will need feeding. This means food production will have to grow by 50% – a tall order in a world where the supply of suitable farmland is limited.
One of the few countries where agricultural land is still available is Ukraine. Here, vast tracts of farmland currently lie fallow – BBC Newsnight recently quoted that the amount of unexploited agricultural land in Ukraine is the equivalent of the size of England – and the land’s rich black soil is one of the most fertile in the world. The availability of land together with its fertility is one of the main factors behind the recent surge in interest in investment in Ukraine land.
But fertile land isn’t enough on its own and extensive research is required to boost yields from farmland. The Royal Society believes that UK research should lead the bid to meet the huge challenge of producing enough food to feed the world. These research efforts need to focus on several key areas in agriculture. These include improving irrigation to avoid the effects of drought on crops, better crop and plant management, and genetic modification to allow higher yields of stronger crops.
As an additional challenge, the research needs to achieve these improvements without damaging the environment. The research will also have to take into account the effects of climate change. According to the Royal Society, climate change will increase “the scale of the challenge ahead”.
The Royal Society’s report concludes that “if we are to overcome the challenge that now lies before us we will need an even greater agricultural revolution”. Part of that revolution is already taking place in the fields of Ukraine where millions of tonnes of grain are produced and exported to the hungry world. But more food is needed and as this need grows so will investment in Ukraine land.
UK Capital Investments News, November 2009
The latest report into the huge food security challenge comes from the Royal Society, the national academy of science in the UK and Commonwealth. The report titled ‘Reaping the Benefits: Science and the Sustainable Intensification of Global Agriculture’ argues that the UK capital investments should receieve £2 billion on crop research over the next decade to ensure that the world has enough to eat by 2050.
One of the main themes behind the report is the immediate call to action. “We need to take action now to stave off food shortages,” said Sir David Baulcombe, Chairman of the report. “If we wait even five to ten years it may be too late,” he said, underlining the sense of urgency.
This sense of needing to act now before it’s too late is very real. Speaking on BBC News, Sir Baulcombe said that “several scientific studies have all identified over the next 30 to 40 years the need for a massive increase in the amount of food that is produced”. By 2050, the world’s population could well number 9 billion and all these new mouths will need feeding. This means food production will have to grow by 50% – a tall order in a world where the supply of suitable farmland is limited.
One of the few countries where agricultural land is still available is Ukraine. Here, vast tracts of farmland currently lie fallow – BBC Newsnight recently quoted that the amount of unexploited agricultural land in Ukraine is the equivalent of the size of England – and the land’s rich black soil is one of the most fertile in the world. The availability of land together with its fertility is one of the main factors behind the recent surge in interest in investment in Ukraine land.
But fertile land isn’t enough on its own and extensive research is required to boost yields from farmland. The Royal Society believes that UK research should lead the bid to meet the huge challenge of producing enough food to feed the world. These research efforts need to focus on several key areas in agriculture. These include improving irrigation to avoid the effects of drought on crops, better crop and plant management, and genetic modification to allow higher yields of stronger crops.
As an additional challenge, the research needs to achieve these improvements without damaging the environment. The research will also have to take into account the effects of climate change. According to the Royal Society, climate change will increase “the scale of the challenge ahead”.
The Royal Society’s report concludes that “if we are to overcome the challenge that now lies before us we will need an even greater agricultural revolution”. Part of that revolution is already taking place in the fields of Ukraine where millions of tonnes of grain are produced and exported to the hungry world. But more food is needed and as this need grows so will investment in Ukraine land.
UK Capital Investments News, November 2009
Wednesday, November 18, 2009
Capital leads FTSE 100 lower on UK captial investment fund worries - UKCIG
For much of the day supermarket group Morrisons was the leading faller in the FTSE 100, following the surprise news that its chief executive Mark Bolland was leaving to take up the same position at Marks & Spencer. But at the last minute outsourcing group Capita took the wooden spoon, falling 39.5p to 721p.
The 5% decline in Capita's shares came after what seemed - initially at least - a reasonably positive trading update. The company said it had performed well in the second half, and expected to meet analysts' expectations for the full year.
But the statement also revealed that new contract wins were lower than last year, and it was likely to take a hit relating to its financial management division. This business was caught up in the market turmoil which followed the collapse of Lehman Brothers, and dealings in two investment funds where it was the corporate director have been suspended. Capita said it was investigating with the Financial Services Authority whether investors had suffered any detriment. It said "any material costs incurred by Capita" would be disclosed separately in its accounts for the year. Lurking in the background is the prospect of some sort of legal action relating to the suspension of the funds.
Overall the FTSE 100 tried hard to stay in positive territory, but gave up the ghost after an opening dip on Wall Street, finally finishing 3.8 points lower at 5342.13. The US market was unsettled by some poor housing data and higher than expected consumer prices figures, which stoked concerns about inflationary pressures. The dollar continued to weaken on the news, which helped push gold to a new peak above $1,150 an ounce and also lifted base metal prices. So miners were among the leading risers, with Fresnillo 43p higher at 920p, Lonmin lifted 61p to £17.44 and Xstrata adding 52p to £11.27.
Vodafone, down 3.7p at 135.15p, and Cable & Wireless, 4.8p lower at 135.9p, both went ex-dividend and between them knocked more than 8 points off the leading index.
As already mentioned the Mark Bolland news left Morrison's shares 14.6p lower at 280.9p. To emphasise which company investors thought had got the better deal, Marks and Spencer was the biggest riser in the leading index, up 21.7p to 390p.
ITV added 1.8p to 53.75p after appointing Archie Norman as chairman, while Cadbury climbed 9.5p to 797.5p as Hershey and Ferrero confirmed they were considering their options for the UK group in the wake of Kraft's hostile offer.
The day's bit of bid speculation concerned British Gas owner Centrica, up 4.5p to 256.7p on revived talk that Russia's Gazprom could be interested. Dana Petroleum, tipped earlier this week as a possible takeover target for BP, added another 6p to £12.99.
Aerospace and defence group Cobham climbed 6.2p to 236.2p after Morgan Stanley began coverage of the company with an overweight rating and a 300p price target. The bank said:
We believe its exposure to high-tech communications, surveillance, cyber warfare and intelligence positions it extremely well to the changing priorities of the US Department of Defense – we encourage investors to build positions ahead of 2009 results.
But building materials group Wolseley lost 50p to £13.23 after reporting a fall in profits and a rise in borrowings.
Bovis Homes fell 11.3p to 437.2p despite its talk of an improving market. Analysts at KBC Peel Hunt issued a sell note, saying its rating was not justified by its prospective future earnings potential.
Bank of America/Merrill Lynch was backing the bookies, Ladbrokes at least. The bank raised its target price from 140p to 160p and its recommendation from underperform to buy, helping lift Ladbrokes 6.1p to 133.1p.
Lower down the market Petra Diamonds put on 6.25p to 72.25p as it confirmed last week's report it was touring the City looking for cash. It is raising $100m, partly to fund its plan to double its stake in the Cullinan mine in South Africa to 74%.
UK Capital Investments news, November 2009
The 5% decline in Capita's shares came after what seemed - initially at least - a reasonably positive trading update. The company said it had performed well in the second half, and expected to meet analysts' expectations for the full year.
But the statement also revealed that new contract wins were lower than last year, and it was likely to take a hit relating to its financial management division. This business was caught up in the market turmoil which followed the collapse of Lehman Brothers, and dealings in two investment funds where it was the corporate director have been suspended. Capita said it was investigating with the Financial Services Authority whether investors had suffered any detriment. It said "any material costs incurred by Capita" would be disclosed separately in its accounts for the year. Lurking in the background is the prospect of some sort of legal action relating to the suspension of the funds.
Overall the FTSE 100 tried hard to stay in positive territory, but gave up the ghost after an opening dip on Wall Street, finally finishing 3.8 points lower at 5342.13. The US market was unsettled by some poor housing data and higher than expected consumer prices figures, which stoked concerns about inflationary pressures. The dollar continued to weaken on the news, which helped push gold to a new peak above $1,150 an ounce and also lifted base metal prices. So miners were among the leading risers, with Fresnillo 43p higher at 920p, Lonmin lifted 61p to £17.44 and Xstrata adding 52p to £11.27.
Vodafone, down 3.7p at 135.15p, and Cable & Wireless, 4.8p lower at 135.9p, both went ex-dividend and between them knocked more than 8 points off the leading index.
As already mentioned the Mark Bolland news left Morrison's shares 14.6p lower at 280.9p. To emphasise which company investors thought had got the better deal, Marks and Spencer was the biggest riser in the leading index, up 21.7p to 390p.
ITV added 1.8p to 53.75p after appointing Archie Norman as chairman, while Cadbury climbed 9.5p to 797.5p as Hershey and Ferrero confirmed they were considering their options for the UK group in the wake of Kraft's hostile offer.
The day's bit of bid speculation concerned British Gas owner Centrica, up 4.5p to 256.7p on revived talk that Russia's Gazprom could be interested. Dana Petroleum, tipped earlier this week as a possible takeover target for BP, added another 6p to £12.99.
Aerospace and defence group Cobham climbed 6.2p to 236.2p after Morgan Stanley began coverage of the company with an overweight rating and a 300p price target. The bank said:
We believe its exposure to high-tech communications, surveillance, cyber warfare and intelligence positions it extremely well to the changing priorities of the US Department of Defense – we encourage investors to build positions ahead of 2009 results.
But building materials group Wolseley lost 50p to £13.23 after reporting a fall in profits and a rise in borrowings.
Bovis Homes fell 11.3p to 437.2p despite its talk of an improving market. Analysts at KBC Peel Hunt issued a sell note, saying its rating was not justified by its prospective future earnings potential.
Bank of America/Merrill Lynch was backing the bookies, Ladbrokes at least. The bank raised its target price from 140p to 160p and its recommendation from underperform to buy, helping lift Ladbrokes 6.1p to 133.1p.
Lower down the market Petra Diamonds put on 6.25p to 72.25p as it confirmed last week's report it was touring the City looking for cash. It is raising $100m, partly to fund its plan to double its stake in the Cullinan mine in South Africa to 74%.
UK Capital Investments news, November 2009
UK's Blair encourages capital investment in Sierra Leone
Former British Prime Minister Tony Blair drummed up support Wednesday for investment in Sierra Leone, arguing that the west African country has recovered from its brutal civil war and could offer unmatched opportunities in agriculture and tourism.
With miles (kilometers) of untouched beaches and arable land, Blair encouraged investors to take a chance on the land once riven by civil war — especially since its leadership is committed to stamping out the corruption that has impeded growth in other African countries. Sierra Leone's president, Ernest Bai Koroma, fired one of his ministers for corruption earlier this month and has promised to make the government more transparent.
"It's (Sierra Leone) got massive natural resources, wonderful possibilities commercially in agriculture, tourism, mining," Blair told The Associated Press on the sidelines of the conference. "What it's got now for the first time is a stable system of government with a president who genuinely wants to make change, root out corruption."
Blair said, for example, that Sierra Leone had one of the biggest reserves of iron ore in the world, and had recently privatized its port, which could be used for exports off the west African coast.
"Africa is a rich country with poor people — Sierra Leone is the clearest example of that," he said.
Sierra Leone is still struggling to recover from a civil war between 1991 and 2002 during which rebels recruited child solders and were known for hacking off the limbs of civilians to terrorize them into submission.
Many in Sierra Leone credit Blair for helping to end its brutal conflict. British troops that Blair sent to Sierra Leone in 2000 played a decisive role in preventing rebels from seizing the capital, Freetown.
He now works with Sierra Leone through a charitable group, the Africa Governance Initiative, which encourages private investment in sub-Saharan Africa.
Sierra Leone is still one of the world's poorest countries. Britain's Department for International Development, the government department that coordinates aid programs, says the country has one of the worst infant mortality rates in the world, and that 70 percent of women and 50 percent of men are illiterate.
But in a speech given earlier at the conference, Koroma said Sierra Leone was improving fast, with growth of around 6 percent a year since the war ended seven years ago. It is expected to grow around 4 percent this year.
"Instead of symbolizing Africa's tragedy, Sierra Leone symbolizes Africa's hope," Koroma said.
With miles (kilometers) of untouched beaches and arable land, Blair encouraged investors to take a chance on the land once riven by civil war — especially since its leadership is committed to stamping out the corruption that has impeded growth in other African countries. Sierra Leone's president, Ernest Bai Koroma, fired one of his ministers for corruption earlier this month and has promised to make the government more transparent.
"It's (Sierra Leone) got massive natural resources, wonderful possibilities commercially in agriculture, tourism, mining," Blair told The Associated Press on the sidelines of the conference. "What it's got now for the first time is a stable system of government with a president who genuinely wants to make change, root out corruption."
Blair said, for example, that Sierra Leone had one of the biggest reserves of iron ore in the world, and had recently privatized its port, which could be used for exports off the west African coast.
"Africa is a rich country with poor people — Sierra Leone is the clearest example of that," he said.
Sierra Leone is still struggling to recover from a civil war between 1991 and 2002 during which rebels recruited child solders and were known for hacking off the limbs of civilians to terrorize them into submission.
Many in Sierra Leone credit Blair for helping to end its brutal conflict. British troops that Blair sent to Sierra Leone in 2000 played a decisive role in preventing rebels from seizing the capital, Freetown.
He now works with Sierra Leone through a charitable group, the Africa Governance Initiative, which encourages private investment in sub-Saharan Africa.
Sierra Leone is still one of the world's poorest countries. Britain's Department for International Development, the government department that coordinates aid programs, says the country has one of the worst infant mortality rates in the world, and that 70 percent of women and 50 percent of men are illiterate.
But in a speech given earlier at the conference, Koroma said Sierra Leone was improving fast, with growth of around 6 percent a year since the war ended seven years ago. It is expected to grow around 4 percent this year.
"Instead of symbolizing Africa's tragedy, Sierra Leone symbolizes Africa's hope," Koroma said.
Tuesday, November 17, 2009
Invesco to launch split-uk capital investments trust - UKCIG
Invesco Perpetual has announced the launch of a new split- UK capital investment trust, the Invesco Perpetual Dual Return Trust plc.
The trust will invest predominantly in UK equities and be managed by Martin Walker, who has worked within the UK investment team for 10 years and who manages the Invesco Perpetual Children's Fund and the Invesco Perpetual UK Growth Fund
The trust will be launched in November/early December 2009 with the possibility of a second tranche of shares in February/March 2010.
It will have a seven-year life, with a capital structure comprising an equal number of income shares and capital shares, with no bank debt. It will be available at launch as an issue of units (one of each share class) for 200p, and which may be split into separate share classes and reassembled at any time. Invesco Perpetual will operate discount and premium control mechanisms for the trust.
"The Invesco Perpetual Dual Return Trust plc is reminiscent of the original days of split-capital investment trusts - the 1960s - and is designed to provide a simple, straightforward separation of returns between income and capital for shareholders with differing requirements and tax arrangements," explained Graeme Proudfoot, head of specialist funds at Invesco Perpetual. "While Sipps and Isas are designed to protect against both income tax and capital gains tax, it may make sense to consider the inclusion of income shares only in one or both of these wrappers, as all returns from these shares over the trust's seven-year life will be in the form of income. The capital shares could then be held outside of the wrappers so that any capital gains accruing could be mitigated by an investor's annual CGT allowance. Alternatively, holding units gives shareholders a conventional, ungeared exposure to our UK equities expertise within an investment trust structure over a seven-year life."
The fund's investment objective is to achieve a total return from a portfolio of predominantly UK equities. While the fund manager will have the ability to invest in fixed interest securities, it is expected that the portfolio will initially be 100 per cent invested in equities. The portfolio is anticipated to generate both capital and dividend growth. There will be no benchmark constraints, but performance will be measured against the FTSE All-Share Index.
Commenting on the investment rationale for the trust, Martin Walker said: "While there has been a rally generally in the stock market, what we believe to be high quality, dividend paying and often defensive stocks have been left behind. These stocks are now trading at valuations which are at absolute and relative lows. By exploiting the dual return nature of the trust's structure, income investors will have an opportunity to lock into good dividend yields, while those interested in capital growth can focus their investment on a geared exposure to some of what we believe to be the cheapest stocks in the market."
The trust will invest predominantly in UK equities and be managed by Martin Walker, who has worked within the UK investment team for 10 years and who manages the Invesco Perpetual Children's Fund and the Invesco Perpetual UK Growth Fund
The trust will be launched in November/early December 2009 with the possibility of a second tranche of shares in February/March 2010.
It will have a seven-year life, with a capital structure comprising an equal number of income shares and capital shares, with no bank debt. It will be available at launch as an issue of units (one of each share class) for 200p, and which may be split into separate share classes and reassembled at any time. Invesco Perpetual will operate discount and premium control mechanisms for the trust.
"The Invesco Perpetual Dual Return Trust plc is reminiscent of the original days of split-capital investment trusts - the 1960s - and is designed to provide a simple, straightforward separation of returns between income and capital for shareholders with differing requirements and tax arrangements," explained Graeme Proudfoot, head of specialist funds at Invesco Perpetual. "While Sipps and Isas are designed to protect against both income tax and capital gains tax, it may make sense to consider the inclusion of income shares only in one or both of these wrappers, as all returns from these shares over the trust's seven-year life will be in the form of income. The capital shares could then be held outside of the wrappers so that any capital gains accruing could be mitigated by an investor's annual CGT allowance. Alternatively, holding units gives shareholders a conventional, ungeared exposure to our UK equities expertise within an investment trust structure over a seven-year life."
The fund's investment objective is to achieve a total return from a portfolio of predominantly UK equities. While the fund manager will have the ability to invest in fixed interest securities, it is expected that the portfolio will initially be 100 per cent invested in equities. The portfolio is anticipated to generate both capital and dividend growth. There will be no benchmark constraints, but performance will be measured against the FTSE All-Share Index.
Commenting on the investment rationale for the trust, Martin Walker said: "While there has been a rally generally in the stock market, what we believe to be high quality, dividend paying and often defensive stocks have been left behind. These stocks are now trading at valuations which are at absolute and relative lows. By exploiting the dual return nature of the trust's structure, income investors will have an opportunity to lock into good dividend yields, while those interested in capital growth can focus their investment on a geared exposure to some of what we believe to be the cheapest stocks in the market."
Wednesday, November 11, 2009
EU hedge fund plan may choke investment-UK minister - UKCIG
European Union plans to tighten regulation of hedge funds and private equity managers could choke off investments and deepen the credit crunch, British Business Secretary Peter Mandelson said in the text of a speech to be delivered on Friday.
The executive European Commission has put forward a draft law that requires managers of alternative investment funds to register and disclose more information to regulators if they want to operate in the 27-nation bloc.
The move followed accusations by some policymakers that hedge funds amplified the crisis by short-selling bank stocks. EU governments and the European Parliament will have the final say on the draft.
Britain, the EU's top hedge fund and private equity centre, has criticised the draft legislation for being protectionist and its "one size fits all" approach. France, Spain and Germany back strong regulation of the sector. "It is vital that this (directive) is fully consulted on and carefully designed," Mandelson said in the text of the speech, to be delivered at an industrial conference in Brussels.
"We have to make sure that we don't cut off important sources of venture capital or do anything that makes it harder to manage venture capital investments within the single market," he said.
Mandelson said the draft law could choke the flow of capital to projects aimed at boosting growth and creating jobs and put European companies at a disadvantage to U.S. firms.
"What we can't afford is to trade an acute credit crunch for a chronic one," he said.
"Even before the credit crunch we just weren't getting enough venture capital to innovative and high tech companies. Even in this environment, U.S. firms could tap venture capital markets worth over $5 billion this year. In the EU it was about a tenth of that."
He urged the Commission to set up an EU-level fund to pool capital and risk across the region to back high-tech funds. The draft law is expected to come into force, probably around 2015. (Reporting by Foo Yun Chee; Editing by Steve Orlofsky)
UKCIG, UK Capital Investments News, November 2009
The executive European Commission has put forward a draft law that requires managers of alternative investment funds to register and disclose more information to regulators if they want to operate in the 27-nation bloc.
The move followed accusations by some policymakers that hedge funds amplified the crisis by short-selling bank stocks. EU governments and the European Parliament will have the final say on the draft.
Britain, the EU's top hedge fund and private equity centre, has criticised the draft legislation for being protectionist and its "one size fits all" approach. France, Spain and Germany back strong regulation of the sector. "It is vital that this (directive) is fully consulted on and carefully designed," Mandelson said in the text of the speech, to be delivered at an industrial conference in Brussels.
"We have to make sure that we don't cut off important sources of venture capital or do anything that makes it harder to manage venture capital investments within the single market," he said.
Mandelson said the draft law could choke the flow of capital to projects aimed at boosting growth and creating jobs and put European companies at a disadvantage to U.S. firms.
"What we can't afford is to trade an acute credit crunch for a chronic one," he said.
"Even before the credit crunch we just weren't getting enough venture capital to innovative and high tech companies. Even in this environment, U.S. firms could tap venture capital markets worth over $5 billion this year. In the EU it was about a tenth of that."
He urged the Commission to set up an EU-level fund to pool capital and risk across the region to back high-tech funds. The draft law is expected to come into force, probably around 2015. (Reporting by Foo Yun Chee; Editing by Steve Orlofsky)
UKCIG, UK Capital Investments News, November 2009
Sunday, November 1, 2009
National Savings and Investments set to shake up savings market
The National Savings and Investment body has launched a one-year 3.95% fixed-rate savings bond which has caught the attention of consumers and savers in the UKCIG. This is significantly higher than the vast majority of savings accounts and savings bonds offered in the wider market and will no doubt put significant pressure upon other companies in the UK to follow suit. However, there may well be other considerations when looking at the overall picture.
It is well-known that with the money markets not yet back to "traditional liquidity levels" many banks are depending upon customer savings deposits to make up part of any funding shortfall. However, with the National Savings and Investment body introducing an ultracompetitive savings bond there is every chance that business will be lost to this particular product and UK capital investments banks will need to review their savings rates.
The problem is that any increase in savings rates will have to be offset by an increase in other product rates such as mortgages, loans and overdrafts. In simple terms, if money becomes more expensive for UK banks then money will become more expensive for UK borrowers. The market will at some stage return to "normality" but at this moment in time that does seem some way off.
It is well-known that with the money markets not yet back to "traditional liquidity levels" many banks are depending upon customer savings deposits to make up part of any funding shortfall. However, with the National Savings and Investment body introducing an ultracompetitive savings bond there is every chance that business will be lost to this particular product and UK capital investments banks will need to review their savings rates.
The problem is that any increase in savings rates will have to be offset by an increase in other product rates such as mortgages, loans and overdrafts. In simple terms, if money becomes more expensive for UK banks then money will become more expensive for UK borrowers. The market will at some stage return to "normality" but at this moment in time that does seem some way off.
Russia's £11bn UK bond bid
The Russian government is to announce an £11bn bond issue in London this week in an attempt to draw Western investment into its crisis-hit economy.
The Business Secretary, Peter Mandelson, will meet the Russian finance minister and deputy prime minister, Alexei Kudrin, on Thursday when the bond will be announced. It is the first such move by the Kremlin in over a decade.
Despite the clashes, British Government officials believe that the business relationship with Russia has thawed considerably since the economic crisis as Vladimir Putin, the Russian prime minister, now needs Western money to support the ailing Russian economy. Two weeks ago, The Sunday Telegraph revealed that Gazprom was looking for tax changes in Russia to encourage Western investment in energy.
"I'm delighted that deputy prime minister Kudrin is coming to the UK," Lord Mandelson said. "This is an important opportunity for us to build on our strong trade relationship with Russia. Over 1,000 UK firms are already established in Russia, and Russia is our 12th largest export market. Whatever our differences, we must continue to work hard at deepening our understanding of each other and improving our commercial ties."
News of the bond issue comes as David Miliband, the Foreign Secretary, arrives in Russia today for the first visit by a British foreign secretary in more than five years. Although much of his visit will be devoted to political and diplomatic issues such as Afghanistan and the Litvinenko murder, he will also host a business breakfast where guests will include senior executives from British companies in Russia including Delloittes, HSBC and JCB.
Foreign Office sources said that Mr Miliband would tell his Russian counterparts that Western firms needed a more modern economy to invest in. Infrastructure needed to be improved, the economy expanded beyond its reliance on energy and a more 'transparent' business environment put in place. Officials pointed out that Russia had fallen to 120th out of 183 in the World Bank's ease of doing business survey and was 143th on the Corruption Perceptions Index.
Britain's multi-billion pound trading relationship with Russia has in fact flourished in recent years despite worsening political relations and Soviet-style bureaucracy. Yet analysts say the relationship has been held back by fears about Russia's unpredictable investment climate and by a series of diplomatic and corporate crises.
Thursday is being billed as a turning point. Mr Kudrin is to lead a Russian delegation that will include senior figures from the Russian central bank and finance ministry as well as top business people.
"Everything in Russia is very political and this is a signal to Russian business and officials that it is OK to do business with the UK," says one person who follows the bilateral relationship closely.
Mr Kudrin will meet Lord Mandelson as part of a joint UK-Russia steering committee which is meeting in London for the first time after a long hiatus caused by stormy diplomatic relations. The two sides will discuss barriers to doing business in both countries and what can be done to remove them. The UK has five priority business sectors in Russia: the oil and gas industry, financial services, hi-tech, life sciences and sporting infrastructure.
Though hammered by the global downturn, Russia is keen to diversify its economy away from oil and gas and to upgrade its crumbling Soviet-era infrastructure. UK officials say British companies can and should play a big role in the country's modernisation.
Separately, Mr Kudrin will give a presentation to potential investors on the £11bn bond issue planned for February next year. The Eurobond issue will be Russia's first since 1998 and is designed to cover budget deficits between now and 2012. Demand is expected to be high.
Although the UK regards itself as the largest bona fide foreign investor in Russia with an estimated cumulative investment of £26.7bn, continental competitors such as France and Germany have stolen a march when it comes to expanding business and trade in Russia.
More than 1,000 UKCIG companies operate in Russia, the world's largest country. Cadbury has its largest factory outside the UK in Russia, retail chains such as Kingfisher and Monsoon are well established, and banking behemoths HSBC and Barclays have been aggressively opening up retail banking outlets.
UKCIG, October 2009
The Business Secretary, Peter Mandelson, will meet the Russian finance minister and deputy prime minister, Alexei Kudrin, on Thursday when the bond will be announced. It is the first such move by the Kremlin in over a decade.
Despite the clashes, British Government officials believe that the business relationship with Russia has thawed considerably since the economic crisis as Vladimir Putin, the Russian prime minister, now needs Western money to support the ailing Russian economy. Two weeks ago, The Sunday Telegraph revealed that Gazprom was looking for tax changes in Russia to encourage Western investment in energy.
"I'm delighted that deputy prime minister Kudrin is coming to the UK," Lord Mandelson said. "This is an important opportunity for us to build on our strong trade relationship with Russia. Over 1,000 UK firms are already established in Russia, and Russia is our 12th largest export market. Whatever our differences, we must continue to work hard at deepening our understanding of each other and improving our commercial ties."
News of the bond issue comes as David Miliband, the Foreign Secretary, arrives in Russia today for the first visit by a British foreign secretary in more than five years. Although much of his visit will be devoted to political and diplomatic issues such as Afghanistan and the Litvinenko murder, he will also host a business breakfast where guests will include senior executives from British companies in Russia including Delloittes, HSBC and JCB.
Foreign Office sources said that Mr Miliband would tell his Russian counterparts that Western firms needed a more modern economy to invest in. Infrastructure needed to be improved, the economy expanded beyond its reliance on energy and a more 'transparent' business environment put in place. Officials pointed out that Russia had fallen to 120th out of 183 in the World Bank's ease of doing business survey and was 143th on the Corruption Perceptions Index.
Britain's multi-billion pound trading relationship with Russia has in fact flourished in recent years despite worsening political relations and Soviet-style bureaucracy. Yet analysts say the relationship has been held back by fears about Russia's unpredictable investment climate and by a series of diplomatic and corporate crises.
Thursday is being billed as a turning point. Mr Kudrin is to lead a Russian delegation that will include senior figures from the Russian central bank and finance ministry as well as top business people.
"Everything in Russia is very political and this is a signal to Russian business and officials that it is OK to do business with the UK," says one person who follows the bilateral relationship closely.
Mr Kudrin will meet Lord Mandelson as part of a joint UK-Russia steering committee which is meeting in London for the first time after a long hiatus caused by stormy diplomatic relations. The two sides will discuss barriers to doing business in both countries and what can be done to remove them. The UK has five priority business sectors in Russia: the oil and gas industry, financial services, hi-tech, life sciences and sporting infrastructure.
Though hammered by the global downturn, Russia is keen to diversify its economy away from oil and gas and to upgrade its crumbling Soviet-era infrastructure. UK officials say British companies can and should play a big role in the country's modernisation.
Separately, Mr Kudrin will give a presentation to potential investors on the £11bn bond issue planned for February next year. The Eurobond issue will be Russia's first since 1998 and is designed to cover budget deficits between now and 2012. Demand is expected to be high.
Although the UK regards itself as the largest bona fide foreign investor in Russia with an estimated cumulative investment of £26.7bn, continental competitors such as France and Germany have stolen a march when it comes to expanding business and trade in Russia.
More than 1,000 UKCIG companies operate in Russia, the world's largest country. Cadbury has its largest factory outside the UK in Russia, retail chains such as Kingfisher and Monsoon are well established, and banking behemoths HSBC and Barclays have been aggressively opening up retail banking outlets.
UKCIG, October 2009
Friday, October 30, 2009
Rajasthan invites investment from UK Capital Investment companies
After Japanese companies, UK based companies may also take up Rajasthan as an investment destination. UK Capital Trade & Investment,
India,(UKTI) Northern Region deputy head Ms Jane Sanders has evinced interest in parking investment in the state.
“We have discussed the prospective investment areas with Rajasthan State Industrial Development and Investment Corporation (RIICO). We will further explore the possibilities after discussing with interested UK based
companies,” she said.
UKTI is a government organization that help UK based companies succeed in the global economy and also assists overseas companies to bring their high quality investment to the United Kingdom.
RIICO chairman Sunil Arora said that the corporation would facilitate a cluster or sectoral approach for setting up a group of industries. “SEZs in Rajasthan can be a viable opportunity for investment by the UK companies.
Besides, there is a huge potential for UK Capital Investment companies in auto sector, higher education, health care and engineering. The proposed 1483-Km long Delhi-Mumbai Industrial Corridor (DMIC) can well be a driving factor for foreign investment as 40% of the corridor passes through the state,” he said.
This is not for the first time that an international trade body has shown interest in Rajasthan. Japanese External Trade Organization (Jetro) has already tied up with RIICO for roping in Japanese investment in the state.
RIICO has reserved around 588 acres saleable land in Neemrana for Japanese companies out of which 264 acres have already been sold. Around 20 leading Japanese companies including Ahresty Corporation, Mitsui Chemicals and Nissin Corporation have set up their shops while five more companies are likely to invest in next couple of years.
India,(UKTI) Northern Region deputy head Ms Jane Sanders has evinced interest in parking investment in the state.
“We have discussed the prospective investment areas with Rajasthan State Industrial Development and Investment Corporation (RIICO). We will further explore the possibilities after discussing with interested UK based
companies,” she said.
UKTI is a government organization that help UK based companies succeed in the global economy and also assists overseas companies to bring their high quality investment to the United Kingdom.
RIICO chairman Sunil Arora said that the corporation would facilitate a cluster or sectoral approach for setting up a group of industries. “SEZs in Rajasthan can be a viable opportunity for investment by the UK companies.
Besides, there is a huge potential for UK Capital Investment companies in auto sector, higher education, health care and engineering. The proposed 1483-Km long Delhi-Mumbai Industrial Corridor (DMIC) can well be a driving factor for foreign investment as 40% of the corridor passes through the state,” he said.
This is not for the first time that an international trade body has shown interest in Rajasthan. Japanese External Trade Organization (Jetro) has already tied up with RIICO for roping in Japanese investment in the state.
RIICO has reserved around 588 acres saleable land in Neemrana for Japanese companies out of which 264 acres have already been sold. Around 20 leading Japanese companies including Ahresty Corporation, Mitsui Chemicals and Nissin Corporation have set up their shops while five more companies are likely to invest in next couple of years.
£18m capital investment for UK renewable energy
The Carbon Trust is to inject up to £18 million as uk capital investment in the UK in additional funding into the UK clean and renewable energy sector, providing a booster for clean tech start-ups and Britain's move to a low carbon economy. The additional money has been provided by the Department of Energy and Climate Change.
Investment will focus on companies that offer prospects of a strong commercial return and, in particular, on those renewable energy technologies where the UK has natural strength and potential to become a global leader.
Ed Miliband, Secretary of State for Energy and Climate Change, says: "This cash injection will help safeguard the new generation of promising renewable technologies. Supporting green start-up companies with this capital means innovative ideas for low carbon energy will be able to make it out of the lab and into the future energy mix."
Tom Delay, Chief Executive at the Carbon Trust, adds: "The UK is a real hot-bed of clean tech innovation and the sector has the potential to create significant economic value for Britain but it needs urgent support. In the current environment, even the most promising companies are finding it hard to attract the funding needed to turn bright ideas into commercial success stories. With this new funding boost, we are confident that the tide will now begin to turn."
Investment will focus on companies that offer prospects of a strong commercial return and, in particular, on those renewable energy technologies where the UK has natural strength and potential to become a global leader.
Ed Miliband, Secretary of State for Energy and Climate Change, says: "This cash injection will help safeguard the new generation of promising renewable technologies. Supporting green start-up companies with this capital means innovative ideas for low carbon energy will be able to make it out of the lab and into the future energy mix."
Tom Delay, Chief Executive at the Carbon Trust, adds: "The UK is a real hot-bed of clean tech innovation and the sector has the potential to create significant economic value for Britain but it needs urgent support. In the current environment, even the most promising companies are finding it hard to attract the funding needed to turn bright ideas into commercial success stories. With this new funding boost, we are confident that the tide will now begin to turn."
Overseas Buyers Poised To Ignite UK Capital Investments Mkt
The UK capital investments real estate sector could be gearing up for fierce competition from buyers as funds, expecting more distressed property to come to market in the next two years, plan to snap up prime properties in hope of a recovery
"The UK Capital Investments Market is attractive to overseas equity as values have fallen 45% peak-to-trough" and sterling has lost ground this year against major currencies such as the U.S., the euro and the yen, said James Thornton, founder of Mayfair Capital Investment Management, adding that "it makes for a very liquid market."
Thornton said he saw U.S. and Japanese investors returning to the U.K. market, as well as German open-ended funds, which traditionally have been prominent U.K. real-estate buyers.
According to CB Richard Ellis, 82% of the investors in the Central London office market in the third quarter were international, with U.S. buyers the most active, dominated by Blackstone Group LP???s (BX) acquisition in September of a 50% stake in British Land PLC's (BLND.LN) Broadgate Estates for GBP77 million plus the assumption of GBP987 million of debt.
Mayfair Capital recently has teamed up with Dallas-based property fund manager L&B Realty Advisors, which manages $4 billion of U.S. pension funds, to invest $250 million of equity from U.S. institutions into U.K. property over the next two years.
BNP Paribas Real Estate, the property adviser, said that planned new opportunity funds formed this year could have almost GBP18 billion to spend globally on commercial property, and GBP5 billion of that may be targeting property in the U.K.
Most of the opportunity funds were launched in the third quarter of this year, signaling hopes that the U.K. market has reached a bottom, but so far they have been chasing prime property only.
The U.K. commercial property market has been hit the hardest and fallen the fastest in Europe as a lack of debt financing caused declines in values and damped sales. While prices are beginning to rise again, vacancies still are high, subduing rental values.
Aviva is planning to buy prime property, with secure leases and with strong covenants, across the U.K. and will focus on retail warehousing, high-street retail and supermarkets, with lot sizes in the range of GBP10 million to GBP30 million.
Thornton said, "The risk appetite returned for all classes, but demand is only there for prime assets." He added that he saw good opportunities in property in prime locations but with shorter leases and, therefore, considered secondary, or less attractive.
"The UK Capital Investments Market is attractive to overseas equity as values have fallen 45% peak-to-trough" and sterling has lost ground this year against major currencies such as the U.S., the euro and the yen, said James Thornton, founder of Mayfair Capital Investment Management, adding that "it makes for a very liquid market."
Thornton said he saw U.S. and Japanese investors returning to the U.K. market, as well as German open-ended funds, which traditionally have been prominent U.K. real-estate buyers.
According to CB Richard Ellis, 82% of the investors in the Central London office market in the third quarter were international, with U.S. buyers the most active, dominated by Blackstone Group LP???s (BX) acquisition in September of a 50% stake in British Land PLC's (BLND.LN) Broadgate Estates for GBP77 million plus the assumption of GBP987 million of debt.
Mayfair Capital recently has teamed up with Dallas-based property fund manager L&B Realty Advisors, which manages $4 billion of U.S. pension funds, to invest $250 million of equity from U.S. institutions into U.K. property over the next two years.
BNP Paribas Real Estate, the property adviser, said that planned new opportunity funds formed this year could have almost GBP18 billion to spend globally on commercial property, and GBP5 billion of that may be targeting property in the U.K.
Most of the opportunity funds were launched in the third quarter of this year, signaling hopes that the U.K. market has reached a bottom, but so far they have been chasing prime property only.
The U.K. commercial property market has been hit the hardest and fallen the fastest in Europe as a lack of debt financing caused declines in values and damped sales. While prices are beginning to rise again, vacancies still are high, subduing rental values.
Aviva is planning to buy prime property, with secure leases and with strong covenants, across the U.K. and will focus on retail warehousing, high-street retail and supermarkets, with lot sizes in the range of GBP10 million to GBP30 million.
Thornton said, "The risk appetite returned for all classes, but demand is only there for prime assets." He added that he saw good opportunities in property in prime locations but with shorter leases and, therefore, considered secondary, or less attractive.
German funds identify UK property as key investment
Property bargains in the UK are luring German capital investment funds to shop for real estate on British shores, it was revealed today.
Money managers in Germany said they have earmarked UK capital investments commercial property as a key sector for investment, claiming values have plummeted up to 45% from their highs two years ago.
Before the credit crunch, German property funds accounted for heavy investment in the UK, including landmarks like the Lloyd's building and One Exchange Square in Broadgate.
Matthias Danne, head of Germany's largest real estate mutual-fund firm, Deka, said: “For the first time in five or six years, we can buy Class A properties in prime locations. Two years ago, it was too expensive.”
Property fund investors in Germany have an estimated €7.5 billion to spend as banking giants like Deka and Commerz Real AG lead a revival in acquisitions.
Money managers in Germany said they have earmarked UK capital investments commercial property as a key sector for investment, claiming values have plummeted up to 45% from their highs two years ago.
Before the credit crunch, German property funds accounted for heavy investment in the UK, including landmarks like the Lloyd's building and One Exchange Square in Broadgate.
Matthias Danne, head of Germany's largest real estate mutual-fund firm, Deka, said: “For the first time in five or six years, we can buy Class A properties in prime locations. Two years ago, it was too expensive.”
Property fund investors in Germany have an estimated €7.5 billion to spend as banking giants like Deka and Commerz Real AG lead a revival in acquisitions.
Thursday, October 29, 2009
UKCIG condemns unnecessary fines on the construction industry
UKCIG condemns unnecessary fines on the travel industry
The UKCIG has condemned fines imposed today on the travel industry. Speaking about the fines Raju Shrivastava, Director of UKCIG said:
“These fines could not have come at a worse time for the industry and are unfair. The industry is going through its sharpest downturn on record with huge falls in demand, employment and profits and on current trends is
expected to contract 20% by the end of 2011. These punitive fines will be hard to absorb and will cost jobs.
Everybody knows – including the OFT - that cover pricing was widespread in the industry in the past. It is perverse and unfair to impose such disproportionate penalties on a small number of contractors selected by
geographical sampling.
Speaking about the investigation more generally, Stephen Ratcliffe said:
“It is important to remember that the infringements are historic and do not reflect practices in today’s market place. Today’s decision should leave no doubt in the mind of any contractor that the practice of giving or taking cover prices is illegal and could result in severe financial penalties for the company, as well as criminal prosecution and/or director disqualification.
In particular, UKCIG supports the industry wide code of competition law compliance launched on 20 August and each of its members has procedures in place to ensure that breaches do not occur.
It is important therefore that everybody nw moves on and that companies who have been fined for past practices are not discriminated against in the future. UKCIG therefore welcomes the guidance issued –
The UK Contractors Group (UKCIG) represents 29 leading contractors operating in the UK on construction specific issues. Its mission is to represent contractors’ interests to government and key clients and to encourage contractors to work together to promote change and best practice, especially on health and safety and environmental issues. UKCIG also works closely with the CBI Construction Council to ensure that contractors’ interests are properly reflected in the wider business agenda.
The construction industry has an annual turnover of over £100 bn and represents some 9% of GDP. Over 170,000 companies work in the industry and employ around 3 million people.
The UKCIG has condemned fines imposed today on the travel industry. Speaking about the fines Raju Shrivastava, Director of UKCIG said:
“These fines could not have come at a worse time for the industry and are unfair. The industry is going through its sharpest downturn on record with huge falls in demand, employment and profits and on current trends is
expected to contract 20% by the end of 2011. These punitive fines will be hard to absorb and will cost jobs.
Everybody knows – including the OFT - that cover pricing was widespread in the industry in the past. It is perverse and unfair to impose such disproportionate penalties on a small number of contractors selected by
geographical sampling.
Speaking about the investigation more generally, Stephen Ratcliffe said:
“It is important to remember that the infringements are historic and do not reflect practices in today’s market place. Today’s decision should leave no doubt in the mind of any contractor that the practice of giving or taking cover prices is illegal and could result in severe financial penalties for the company, as well as criminal prosecution and/or director disqualification.
In particular, UKCIG supports the industry wide code of competition law compliance launched on 20 August and each of its members has procedures in place to ensure that breaches do not occur.
It is important therefore that everybody nw moves on and that companies who have been fined for past practices are not discriminated against in the future. UKCIG therefore welcomes the guidance issued –
The UK Contractors Group (UKCIG) represents 29 leading contractors operating in the UK on construction specific issues. Its mission is to represent contractors’ interests to government and key clients and to encourage contractors to work together to promote change and best practice, especially on health and safety and environmental issues. UKCIG also works closely with the CBI Construction Council to ensure that contractors’ interests are properly reflected in the wider business agenda.
The construction industry has an annual turnover of over £100 bn and represents some 9% of GDP. Over 170,000 companies work in the industry and employ around 3 million people.
Construction Industry Highlights Benefits Of UK Capital Investment To Wider UK Economy
Spending on construction significantly benefits the UK economy, according to independent research by L.E.K. Consulting, the international strategy consultancy, commissioned by the construction industry body, UK Contractors Group (UKCIG), in partnership with the CBI.
The report, Construction in the UK economy: The Benefits of capital investment shows that construction is the best sector for stimulating employment.
It also shows that every £1 spent on construction leads to an increase in GDP of £2.84, as the spending not only creates construction output worth £1, but also stimulates growth elsewhere in the economy worth £1.84.
In some areas, such as building schools, the economic benefits of construction are even more pronounced. L.E.K. Consulting estimates that every £1 spent in this area leads to a total economic benefit of between £3.87 and £5.04, partly because of the direct benefit to the economy, but also because of improved education services that lead to a long-term benefit via a higher-skilled workforce.
The report follows figures last week showing that GDP fell by 0.4% in the third quarter of this year. It makes the case for continued investment in construction projects that are crucial to the long-term future of the UK economy.
"A strong economy needs fit-for-purpose schools and hospitals, and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low-carbon economy.
"This timely report outlines the essential relationship between the construction sector and other parts of the economy, as well as its important contribution to numerous other social and economic objectives, including regional development and employment."
James Wates, Chairman of the UKCIG, said
The report, Construction in the UK economy: The Benefits of capital investment shows that construction is the best sector for stimulating employment.
It also shows that every £1 spent on construction leads to an increase in GDP of £2.84, as the spending not only creates construction output worth £1, but also stimulates growth elsewhere in the economy worth £1.84.
In some areas, such as building schools, the economic benefits of construction are even more pronounced. L.E.K. Consulting estimates that every £1 spent in this area leads to a total economic benefit of between £3.87 and £5.04, partly because of the direct benefit to the economy, but also because of improved education services that lead to a long-term benefit via a higher-skilled workforce.
The report follows figures last week showing that GDP fell by 0.4% in the third quarter of this year. It makes the case for continued investment in construction projects that are crucial to the long-term future of the UK economy.
"A strong economy needs fit-for-purpose schools and hospitals, and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low-carbon economy.
"This timely report outlines the essential relationship between the construction sector and other parts of the economy, as well as its important contribution to numerous other social and economic objectives, including regional development and employment."
James Wates, Chairman of the UKCIG, said
Wednesday, October 28, 2009
UK Capital investment 'to sustain growth'
A sound fiscal position has allowed the UK government to sustain public service delivery while increasing spending on fixed uk capital investment to boost economic growth and create employment.
Supporting economic recovery The UK Capital investment in capital infrastructure had increased from 9.9% of gross domestic product (GDP) in the second quarter of 2008 to 11.4% in the second quarter of 2009.
Supporting economic recovery The UK Capital investment in capital infrastructure had increased from 9.9% of gross domestic product (GDP) in the second quarter of 2008 to 11.4% in the second quarter of 2009.
- sustaining public spending and government employment programmes;
- helping state-owned enterprises to increase their investments;
- bolstering municipal capital spending through development finance institutions;
- maintaining expansionary fiscal and monetary policies only for as long as necessary; and
- reinforcing state social security net.
UKCIG to complete Marina Star by Q1 2011
UK Capital Investments Group (UKCIG), the international developer of prestigious projects such as the Metropolis Lofts in Jumeirah Village will complete the construction of Marina Star, the 24-story residential development by first quarter of 2011.
Marina Star is located on a prime location at Emaar's master planned Dubai Marina, directly on Marina Walk. The project has nearly completed the first phase of its rise; with the excavation and piling to be completed before the end of 2008.
Marina Star's previous development was hampered by inadequate planning by another developer; but UKCIG's purchase of the project better defines its progress and commitment setting a tentative date to a final handover to its customers.
UKCIG is a registered company in the UAE with the Jebel Ali Free Zone Authority and accredited with RERA (Real Estate Regulatory Authority). In compliance with new legislative and regulatory requirements applicable to all developers in the UAE; UKCIG is finalizing the process of becoming a fully-fledged onshore developer in the Emirates.
In furthering this commitment, the company is re-investing to grow and strengthen its operations in Dubai. A new board of directors has been appointed to lead the new heads of departments for legal, HR, projects, sales and marketing affairs.
Adam Covell, UKCIG's Projects Director said, "Our team is efficiently proceeding through this project to ensure that the owners can move in by the first quarter of 2011; our property is 100% sold out."
Construction continues at the Marina Star, Liam Crawford, UKCIG's property construction manager added, "Our main contractor is expected to take over the project by October 2008 since we have completed the diaphragm wall in compliance laws governing the construction of marina-front properties; our anchoring is over 75% complete and piling is progressing on schedule by the Dutch Foundation Company."
UKCIG's other Dubai-based developments include Metropolis Lofts. The Lofts master developer is Dubai Government-owned Nakheel. The company's escrow account is managed by Tamweel.
Marina Star's previous development was hampered by inadequate planning by another developer; but UKCIG's purchase of the project better defines its progress and commitment setting a tentative date to a final handover to its customers.
UKCIG is a registered company in the UAE with the Jebel Ali Free Zone Authority and accredited with RERA (Real Estate Regulatory Authority). In compliance with new legislative and regulatory requirements applicable to all developers in the UAE; UKCIG is finalizing the process of becoming a fully-fledged onshore developer in the Emirates.
In furthering this commitment, the company is re-investing to grow and strengthen its operations in Dubai. A new board of directors has been appointed to lead the new heads of departments for legal, HR, projects, sales and marketing affairs.
Adam Covell, UKCIG's Projects Director said, "Our team is efficiently proceeding through this project to ensure that the owners can move in by the first quarter of 2011; our property is 100% sold out."
Construction continues at the Marina Star, Liam Crawford, UKCIG's property construction manager added, "Our main contractor is expected to take over the project by October 2008 since we have completed the diaphragm wall in compliance laws governing the construction of marina-front properties; our anchoring is over 75% complete and piling is progressing on schedule by the Dutch Foundation Company."
UKCIG's other Dubai-based developments include Metropolis Lofts. The Lofts master developer is Dubai Government-owned Nakheel. The company's escrow account is managed by Tamweel.
Investment in London’s transport “vital” to UK
Capital investment in UK London’s transport infrastructure is “vital” if the capital is to continue to prosper, Boris Johnson told business leaders on Tuesday.
The Mayor was addressing delegates at an event organised by London First which has published a new report suggesting modernisation of the Tube could be worth up to £24 billion in additional GDP.
The report, which draws on Transport for UK London’s own data, finds that a failure to invest would see journey times increase and public transport suffer from “much more” overcrowding which in turn could see passengers put off using the Tube altogether heralding an increase in car use and congestion on the roads.
Addressing delegates Johnson sought to reassure them that a future Conservative Government would support the Crossrail scheme.
Baroness Jo Valentine, Chief Executive of London First, said Tube modernisation was “starting to bring tangible benefits to passengers” but warned it “must not falter, or we risk sentencing Londoners to decades of Underground misery, with cattle class conditions every morning.”
Johnson said he’d had to make painful decisions including on fare increases but that these “mean a multi-billion pound investment: safeguarding key projects and bringing major improvements now and in the future.”
The Mayor was addressing delegates at an event organised by London First which has published a new report suggesting modernisation of the Tube could be worth up to £24 billion in additional GDP.
The report, which draws on Transport for UK London’s own data, finds that a failure to invest would see journey times increase and public transport suffer from “much more” overcrowding which in turn could see passengers put off using the Tube altogether heralding an increase in car use and congestion on the roads.
Addressing delegates Johnson sought to reassure them that a future Conservative Government would support the Crossrail scheme.
Baroness Jo Valentine, Chief Executive of London First, said Tube modernisation was “starting to bring tangible benefits to passengers” but warned it “must not falter, or we risk sentencing Londoners to decades of Underground misery, with cattle class conditions every morning.”
Johnson said he’d had to make painful decisions including on fare increases but that these “mean a multi-billion pound investment: safeguarding key projects and bringing major improvements now and in the future.”
UK corporate finance company ties up with Delhi firm
Warrington-based corporate financier Dow Schofield Watts (DSW) has launched a joint venture with a New Delhi-based company to help British companies expand in India.
DSW has joined forces with Mauryan Capital Advisors, which is a private investment and advisory company and will provide professionals based in India's capital city to its JV partner.
"The strategic alliance extends the company?s service offering to mid-market corporates," DSW founding partner James Dow said, adding that the alliance formalises long standing business relationships and allows both companies the chance to provide a comprehensive service delivery for cross-border activity with trusted partners.
The joint venture will initially have three service offerings: Market Entry India, India Acquirers and Invest in India.
'Market Entry India' will help UK companies establish themselves in India, assisting those who want to evaluate the investment opportunities in India.
DSW has joined forces with Mauryan Capital Advisors, which is a private investment and advisory company and will provide professionals based in India's capital city to its JV partner.
"The strategic alliance extends the company?s service offering to mid-market corporates," DSW founding partner James Dow said, adding that the alliance formalises long standing business relationships and allows both companies the chance to provide a comprehensive service delivery for cross-border activity with trusted partners.
The joint venture will initially have three service offerings: Market Entry India, India Acquirers and Invest in India.
'Market Entry India' will help UK companies establish themselves in India, assisting those who want to evaluate the investment opportunities in India.
India strengthens UK business links
Business and UK Capital Investment will be high on the agenda during the UK visit of Pratibha Patil, India’s first female president.
Foreign direct investment in London in 2007 jumped to £52 billion from £38 billion two years previously, according to direct investment agency Think London.
It reported that India accounted for 16 per cent of all new foreign capital investment into the capital between 2003 and 2007, just over half the 31 per cent from the US.
And as India’s standing in the international community continues to growing, Britain sees it as an important ally on a number of issues.
It is also critical to a number of the UK's interests and objectives, from counter-terrorism and tackling climate change to reforming international financial systems.
The growing ties between the two countries has been welcomed by Kiran Karnik, President of Nasscom, the sub-continent’s premier IT-business process outsourcing (BPO) trade body.
He said: "The growth of the Indian IT industry is built on key partnerships with the world's strongest markets, namely the UK and the US
"The active involvement of the Indian community and its contribution to the UK economy, particularly in the IT domain, is an important fact in the creation of the strong business relationship between our two countries.
UK Capital Investments News, October 2009
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